Nvidia Share Price Gains Over 3%: Revenue, Profit Growth Beats Estimates with Upbeat Guidance
Executive Summary
The Nvidia share price rallied over 3% in regular trading on Wednesday, driven by the tech giant’s impressive financial performance in its fourth quarter. The company’s revenue and profit growth exceeded market estimates, with a significant uptick in demand for its specialized Blackwell chips. In this article, we’ll dive deeper into the latest news and insights surrounding Nvidia’s financial performance and its impact on the company’s share price trend.
Nvidia’s Q4 Results: A Stable and Strong Quarter
Nvidia’s financial performance in the fourth quarter of fiscal 2025 was impressive, with revenue of $39.3 billion, a 12% increase from the previous quarter and 78% growth from the same period a year ago. The company’s adjusted per-share profit of 89 cents also exceeded market estimates of 84 cents a share. Net income was $22.06 billion, beating analysts’ predictions of $19.57 billion.
Blackwell Chips Drive Growth
The surge in demand for Nvidia’s specialized Blackwell chips, specifically designed for artificial intelligence (AI) and data analytics, was a key factor in the company’s strong financial performance. According to Nvidia’s CEO, Jensen Huang, "Demand for Blackwell is amazing as reasoning AI adds another scaling law – increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter."
Data-Center Segment Leads Growth
The data-center segment, which accounts for the majority of Nvidia’s revenue, saw a significant growth of 93% to $35.6 billion in the quarter, exceeding estimates of $33.59 billion. This segment had recorded a growth of 112% in the prior quarter.
Upbeat Guidance for Q1
Nvidia provided upbeat guidance for the first quarter, with total revenue expected to be around $43 billion, plus or minus 2%. This is slightly higher than the average estimate of $41.78 billion by analysts. However, the company forecasted a slightly lower gross margin of 71%, below the 72.2% forecast by Wall Street.
CEO’s Take on Q4 Results
Nvidia’s CEO, Jensen Huang, attributed the company’s strong performance to the growing demand for AI and data analytics solutions. "We delivered $11 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in our company’s history," he said.
Nvidia Share Price Trend
The Nvidia share price has been on a tear, with investors betting on the company’s foreseeable growth prospects. The stock has jumped 66% in the past year and delivered more than 400% returns over the last two years. While it has fallen 5% on a year-to-date basis, the stock is expected to continue its upward trend driven by its strong financial performance and growth prospects.
Conclusion
In conclusion, Nvidia’s latest financial results demonstrate the company’s strong position in the growing AI and data analytics market. The demand for Blackwell chips and the company’s solid financial performance have driven the stock price higher, making it an attractive investment opportunity. As the company continues to innovate and expand its product offerings, investors can expect the Nvidia share price to maintain its upward trend.
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